Costco 2004 Annual Report Download - page 43

Download and view the complete annual report

Please find page 43 of the 2004 Costco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 56

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56

Note 3—Debt (Continued)
Letters of Credit
The Company has letter of credit facilities (for commercial and standby letters of credit), totaling approx-
imately $338,000. The outstanding commitments under these facilities at August 29, 2004 totaled approximately
$166,800, including approximately $52,900 in standby letters of credit.
Short-Term Borrowings
The weighted average borrowings, maximum borrowings and weighted average interest rate under all short-
term borrowing arrangements were as follows for fiscal 2004 and 2003:
Category of Aggregate
Short-term Borrowings
Maximum Amount
Outstanding
During the Fiscal Year
Average Amount
Outstanding
During the Fiscal Year
Weighted Average
Interest Rate
During the Fiscal Year
Fiscal year ended August 29, 2004
Bank borrowings:
Canadian .......................... $ 53,826 $ 3,005 2.73%
Other International ................... 48,232 21,994 4.40
Fiscal year ended August 31, 2003
Bank borrowings:
Canadian .......................... $ 5,655 $ 367 4.65%
Other International ................... 127,098 81,431 3.68
U.S. Commercial Paper ................... 17,657 2,065 4.92
Long-term Debt
Long-term debt at August 29, 2004 and August 31, 2003 consisted of the following:
2004 2003
7
1
⁄
8
% Senior Notes due June 2005 ................................. $ 304,350 $ 308,684
5
1
⁄
2
% Senior Notes due March 2007 ............................... 321,404 325,520
2.070% Promissory notes due October 2007 ......................... 32,004 30,079
1.187% Promissory notes due July 2008 ............................ 27,432 25,782
0.88% Promissory notes due November 2009 ........................ 27,432 25,782
0.92% Promissory notes due April 2010 ............................. 36,576 34,376
3
1
⁄
2
% Zero Coupon convertible subordinated notes due August 2017 ...... 543,025 524,735
Notes payable secured by trust deeds on real estate .................... — 8,023
Capital lease obligations and other ................................. 7,117 13,719
1,299,340 1,296,700
Less current portion ............................................. 305,594 7,051
Total long-term debt ............................................ $ 993,746 $1,289,649
In June 1995, the Company issued $300,000 of 7
1
⁄
8
% Senior Notes due June 15, 2005. Interest on the notes
is payable semiannually on June 15 and December 15. The indentures contain certain limitations on the Compa-
ny’s and certain subsidiaries’ ability to create liens securing indebtedness and to enter into certain sale-leaseback
transactions. In November 2001, the Company entered into “fixed-to-floating” interest rate swap agreements that
replaced the fixed interest rate with a floating rate indexed to LIBOR. The Company plans to repay the 7
1
⁄
8
%
Senior Notes from its cash and cash equivalents and short-term investments balances, which total $3,129,882 at
August 29, 2004.
In March 2002, the Company issued $300,000 of 5
1
⁄
2
% Senior Notes due March 15, 2007. Interest is pay-
able semi-annually on March 15 and September 15. Simultaneous with the issuance of the 5
1
⁄
2
% Senior Notes,
41